1a.The following equations describe the demand and supply of the market for rental housing in Cyberport.

Demand: P = 500 - 20Qd

Supply: P = 200 + 10Qs

where P is the rent ($/month), Qd and Qs are quantity demanded and quantity supplied respectively.

If the rent ceiling is set at $240 a month, the quantity of housing rented is[Answer]units.

(In decimal numbers, with two decimal places, please.)

Answer:

1b. With the above price ceiling, the maximum price that the marginal buyer is willing to pay for the last unit of house available is $[Answer].

(In decimal numbers, with two decimal places, please.)

Answer:

1c. With the above price ceiling, the largest possible consumer surplus is $[Answer].

(In decimal numbers, with two decimal places, please.)

2.Suppose the supply curve of oranges is P = 2.5Q. The free-market equilibrium price is $10. The government wants to impose a price ceiling at $1. As a result of this price control, we expect producer surplus to decrease by $[Answer].

(In decimal numbers, with two decimal places, please.)

Question 5 Not complete Marked out of 1.00 1.? Flag question Consider the following supply and demand schedule of rental apartments. Rent {15} Quantity demanded {units} 500 '1 7'00 550 'l 450 600 \"l ZDGI 650 950 700 7'00 Suppose initially the rental apartment market is in equilibrium. Ifthe government sets a rent ceiling at $650. the quantity tI [in decimal numbers. with two decimal places. please.) ANSWER l ' Question 6 Not complete Marked out of 1.00 1'? Flag question Ifthe government enforces a rent ceiling at $550. the quantitytransacted will be [Answer]. [In decimal numbers. with two decimal places, please.)